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Making inquiries about entries on your credit history

By Karen Anderson
Published: Wednesday, October 20th, 2010

Credit reports carry crucial information about one’s credit worthiness. You can actually be defined by the credit score derived from these credit records. You can be denied of loans in an instant just because of having a good credit score. You can also be deprived of experiencing favorable rates if you carry a bad credit record. You can even be rejected with your job application because you did not handle your credit lines well. This is how piercing this credit report can be.

There are so many factors that you have to consider if you do not want to experience any of the situations mentioned above. You can have a bad record if you have bankruptcy records. This specific stain can stay on your record for seven or ten years. Foreclosures can also hurt your credit records. Consecutive late payments of bills can also wreck your credit history. Also too much inquiries for your credit history in a short span of time can ruin your credit record.

Indeed even inquiries can hurt your chances of building good credit worthiness. However this depends on what kind of inquiry was it.  We actually have two types of inquiry when it comes to credit reports and we call them hard and soft.

Soft inquiries are not products of something you do. You did not trigger them in any way for these inquiries are done by credit companies who are eyeing for consumers to include in their mailing lists. Credit companies request for your record to send you some offer of credit. Soft inquiries do not need to bother you since they do not have negative impact on your credit records moreover it is only you who can see the list of soft inquiries.

Hard inquiries on the other hand are results of something you do. Once you applied for installment loans, credit cards, mortgages, store credit accounts, student loan or car loan, lenders will turn to the credit bureaus to request for your credit history. Such inquiry will leave negative impact to your credit report moreover will go straight to your credit report and may be viewed by lenders. You initiated these hard inquiries because you applied for some credit. Having a lot of hard inquiries over a short period of time will definitely lower your credit score. So if there is some inquiry you wanted to avoid, it is definitely too much of hard inquiries.

The three major credit bureaus have different terms to refer to soft and hard inquiries but that does not change how inquiries influence your credit report. If you applied for more than one credit card company in a short time you are making the impression that you are an impulsive and desperate person who tends to jump from one credit card company to another most likely because the first applications were denied. If you do not want such negative impression represent your entire credit worthiness then you better avoid initiating several hard inquiries on your credit report.

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